>> on facebook as well? >> facebook, she responded to the other officer. >> we reached to out to the officers, hearing from the officers what are they saying? >> well, you know, the first female officer that was suspend suspended send the responsibility, wants to move on with her career, suspended without pay, brook, she was not dismissed. the other officer is appealing her three-day suspension, saying it was just a bit too long and she is going to arbitration on december 16th. >> sunny hostin on the case for us, see you tomorrow. and now to wolf blitzer in washington. wolf? brook, thank you very much are. happening now, breaking news, senators reject the appeal of don't ask, don't tell, at least for now, a major, major defeat for president obama and gay rights activists and house democrats are in a revolt right now against their president and his tax deal with the republicans. this hour the internal warfare and what it could cost

taxpayers. and anger exploding on the streets of london, but british lawmakers are taking a big step to try to rein in spending anyway. i'm wolf blitzer. you're in "the situation room." let's begin with the breaking knew the united states senate killing hopes for repealing don't ask, don't tell any time soon. the senate democratic leader holding a critical vote. just moments ago, a vote virtually certain he and his party and his president would lose. our senior congressional correspondent dana bash is standing by in capitol hill. let's go to our pog correspondent, barbara starr, first. barbara, this is not only a setback for the president, the vice president but for the secretary of defense and the chairman of the joint chiefs. >> absolutely, would. and at this hour, no word at all from defense secretary robert gates, admiral mullin, chairman of the joint chiefs about the vote on capitol hill within the

last several minutes. within with the hour, secretary gates traveling overseas, no comment from the pentagon yet about all of this, but earlier this week, secretary gates, in fact, made some very unusual comments about this. it was a vote that he wanted and yet, he appeared to downplay some of it, staying might not even happen. have a listen. >> not particularly optimistic that they are going to get this done. i would hope that they would. the reason is in october, i don't know whether the memos reached you or not in october, we'd district court judge in california that basically overturned the don't ask, don't tell law and required the military worldwide to comply immediately. >> secretary gates talking to troops in the persian gulf wanting this and said maybe there won't won't be time in the congress a lot of people in the pentagon raised eyebrows at that

comment. the second part of what he said that is the major problem for the pentagon now. wolf, there is a court case in california, federal judges about to hear oral arguments on the constitutionality of don't ask, don't tell. there is every expectation that the federal courts will continue with previous rulings, that it is unconstitutional to have this ban. they will order it lifted and the pentagon will have to move smartly to comply with it. they won't have the time to adjust they had hoped for if congress had passed the repeal. wolf? >> doesn't look like congress will pass that repeal any time soon. let's go to capitol hill. dana bash is standing by. i guess the question that is puzzling me and a lot of folks out there, dana, why did harry reid, the senate majority leader get this vote going today, knowing it is going to lose? >> such a controversial question, wolf, that a lot of people are asking. if you look at the math, people who sport repeal say they do believe there are 60 senators

who agree with them, they agree with repealing the don't ask, don't tell policy. gop senator susan collins voted yes today but other republicans though who support the repeal say they didn't want to do this before the congress dozen deals with what they consider more pressing matters like dealing with the tax cut bill. so the question everybody is asking, why did senator reid do this? he said he doesn't believe that republicans would have are ever come around and always been hard to get those 60 votes to proceed to this bill. but i can tell that you talking to gay rights activists they can, in the words of one with, feel betrayed by senator reid that he pushed for this at this time, but also senator lieberman, i should tell you, just did a press conference, he is one of the big support others of a repeal. he said that he talked to harry reid and that senator reid did tell him that he would try to take this up one more time, a stand-alone repeal bill before the lame duck session is over, a lot of pressure on senator reid to do that. >> really problematic

procedurally because of amendments and everything else. it is by no means gar ran toifd passage? >> no means guaranteed of passage, senator lieberman said the democratic leader promised woe do it. there is limited time here we are talking about. >> might a have a chance, give up their christmas and new year's, just stay working in washington, i suspect most of the senators will not buy into that. let's talk about the other huge setback for the white house. today, the house democratic caucus, they decided they don't even want to bring up his tax compromise that he negotiated with the gop leadership what is going on? >> it such an act of defiance and slap at their fellow democrat in the white house, wolf, who think he basically sold them out in negotiating this tax cut package with republicans. what happened was it was a surprise, house democrats had

held a meeting and a vote that was approved by voice vote with people chanting, we are told, "just say no" not to bring up this tax cut package on the house floor in its current form. here's what democrat chris van hollen said afterwards. >> this message today is very simple, that the -- in the form that was negotiated it is not acceptable to the house democratic caucus, it is as simple as that. >> now, to be clear, democrats in the because and elsewhere who wanted to get this done, replaying on republican votes to pass this, but house democrats still runt place, so they are the ones that dictate the floor. that's why it's important. now why are democrats so angry on process and policy in many democratic house congressmen told me they might have been able to swallow the idea they are breaking a campaign promise and extend tax cut for the wealthiest american because this estate tax provision in this

package, the idea that individuals who have estates $5 billion exempt from a tax, that was something very, very hard for them and put them over the edge on the policy, they say it is a giveaway to the wealthy. on process, boy, is there anger? it is not going away, anger at the white house, wolf, by house democrats, democrats in the white house as well, being shut out of the process, maybe being sold out, the president dealing with republicans only words of one source i talked to, breathtaking how the white house mishandled this and they could just push house democrats, squeeze them into doing this. >> took them for granted. let's go to the white house, ed henry is joining us. what are they saying over there in the face of these setbacks? >> amazing, such a dichotomy, you hear dana reporting that you hear things could be falling apart on the hill. house democrats in open war with this president. this end of pennsylvania avenue

this sort of shrug, what, me worry? they think in the end they are still going to get this tax cut through somehow and churn out press release after press release, the mayor of tulsa, the mayor of charlotte, any number of people around the country are endorsing this tax cut plan, yet the people actually is to vote on it not mayors out there around the country but people on the hill have to vote on it not ready to approve t robert gibb brushed all that off in his briefing today said, look, we are following make minor changes here but said they cannot make major changes to this plan or it will just unravel. take a listen. >> if one side takes out what they don't like and the other side takes out what they don't like, we are gonna have that. and that, a blank piece of paper is not going to prevent middle class tax rates from going up. >> what is really interesting, you talk to senior officials

here counting the votes on the hill and trying to lobby wavering lawmakers they can say they don't think it makes sense for house democrats to block this on the merits, the president laid out this week, news conference, other ven news, wants to help people, unemployment benefits expiring, middle class folks see their tax goes up january 1st without any deal. secondly, at the white house they don't understand the politics of the this if you look at, this the bottom line is if the democrats on the hill block this and people's taxes go up on january 1st and then a new republican house comes in a couple of days later and all of a sudden passes tax cuts, you know, brings back the old bush tax rates, all of a sudden, republicans have a great narrative saying they are cutting taxes while it was the democrats that raised them going into 2011/201 not really a narrative the white house wants to see, wolf. >> what a story unfolding in washington. don't go too far awake ed, we will check back with you. president obama and congressional leaders may want to take a close and good and long look at what is going on across the atlantic now as they watch a new attempt at

compromise, possibly, possibly falling apart. massive protests, look at this, in london, over a hike in university tuition approved by lawmakers today. look at this many people can't help but wonder if this could happen in the united states, there is soaring spending, soaring debt and economic pain. let's hope it can't. but the tensions in london are real right now as they are elsewhere in europe because of all the debt and the spending cuts that are going forward. britain's prince charles has been drawn into the protest against tuition hikes in britain in a dangerous watch we will explain what is going on. and a spectacular blaze at a home that was essentially bomb factory is burned to the ground. and what if anything can be done to stop supporters of wikileaks from attacking popular websites with links to your finances? ♪

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looking at live pictures of washington, d.c. the president and the first family, getting ready to light the christmas tree over at the white house. we will check in shortly, see what is going on. stand by for that. let's go to jack right now for the cafferty file. jack? >> see if you can figure out who said this. "both parties follow the mood of the moment instead of leading from the front, especially in these tough times, we need our leaders to inspire the whole country, not criticize half of it." or this, "as families struggle to get by, they have seen little but partisan gridlock, political bandering and legislative inflew hence-peddling, finger-pointing blame games and endless attacks." or "we have got to pull together and focus on what's important for america and then roll up our sleeves and fix the things that need fixing this is the greatest

nation on earth." or this, "we need to shift course we need those in government to stop demagoging and start delivering." or "today, we again have our future in our hands. we can blame others or put our nose to the grind stone and get back to work. we can keep kicking the can down the road and allow the country to fall further behind or we can face up to the hard choices". those comments are part of a speech made by a man who has said over and over again he is not flood national political office, doesn't sound like it does it in the sweeping speech was given by the mayor of new york city, michael bloomberg, in which he calls for a middle way in government. maybe the republican-turned-independent bloomberg is think thinking the same thing a lot of the rest of us are. when you are looking it he possible presidential candidates for 2012, it's kind of a yawn. sarah palin? don't make me laugh. mitt romney? been there, done that.

barack obama, probably, but co-lose. any way, here's the question. what do you suppose new york mayor michael bloomberg is up to? go to cnn.com/caffertyfile, post a comment on my blog. >> a lot of people wondering it is an intriguing question, jack, thank you. get back to the breaking news we are fork the senate rejects the repeal of don't ask, don't tell and a critical test vote that happened within the past hour or so right now though, some other important measured buy backed by democrats are also at serious risk. a bill that could give hundreds of thousands of young immigrants legal status in the united states has stalled in senate, so the called dream act was approved by the house yesterday but senate democrats today yanked the bill, conceding they simply don't have the vote toes pass it we are told it could be brought up again in a week. let's fee that happens. meantime, senate republicans have derailed a bill to help 9/11 first responders who got sick from working at ground

zero. the $7.4 billion package failed in another test vote in the senate earlier today. let's talk about all of this and more with our senior political analyst, david gergen. david, here is a question that i have been asking myself. why has the administration and the democratic leadership in congress waited until the very end of this session of congress to try to do so much? they had so long to do don't ask, don't tell so many years do the dream act. the s.t.a.r.t. treaty, for example, was approved, signed eight months ago they waited until the lame duck session to try to do this and might wind up doing nothing? >> wolf, they have really gotten themselves into quite a mess, haven't they? and procedural messes, very disappointing to a lot of their supporters, especially democratic, liberal base, but it is important for the country, too, it is going to divide the country. wolf, i puzzled over this as you have. one answer is i think they had

so much on their agenda. they were so overly ambitious of all the things they wanted to pass. health care consumed an enormous amount of time. with a lengthy agenda, a lot of things got left to the end and unrealist since the beginning to think in the last lame duck session, especially after such a resounding negative vote from the public and elections think could you get this stuff pushed through. right now, maybe they can get one or two of these things through but today's defeat on don't ask, don't tell was a major blow to the administration and frankly, i'm biased on this i thought we ought to get rid of don't ask, don't tell. i was there when president clinton embraced it. i think it is time to change t i am bias buddies appointing it has gone down this way today. >> as bad as the legislative numbers are right now for the president and the democrats in the house and the senate during this lame duck session, you know it's going to be a whole lot

worse in the next congress when there will be a significant, a huge republican majority in the house of representatives and the majority the democrats have in the senate is going to be cut back dramatically. >> that's absolutely right, wolf, things like don't ask, don't tell have much less chance next year so does the s.t.a.r.t. treaty, a number of things, which is why it is so urgent from the democratic point of view to get these things passed, they have to come back to this tax issue and have the democrats in the house of representatives saying they won't bring it up, nancy pelosi won't bring it to a floor vote unless there is significant changes imperils that bill as well. this is a tough time for the white house. i think what's also surprising, wolf, i kept asking myself, i'm puzzled, maybe you have an answer. i don't understand why the president isn't more of a master of the congress t is his party that is running it, after all with large majorities and think as a democratic president, he would have enough allies up there to sort of organize

things. he is not lbj, but you would think he has come closer than he has. and right now, he is, you know, one of the mistakes he made here, he has made the same mistake twice but in different ways. you know, on so much of things that came before the house early on, he just gave all the authority to nancy pell lows toy is writ bills, stimulus bill, health care bill, so forth and so on. now it came to the tax bill, he left them out of the process and one of the reasons they are so angry is they were cut cut out of the process, just negotiated, very strange. >> i don't rear time like this at least the recent history -- >> i don't either. >> we have seen this in washington. stand by, david, appreciate it very much. the president of the united states is getting ready to light the christmas tree together with his family. we will take a quick break, we will see the lighting of the white house christmas tree right after this.

there it is, the white house christmas tree, what a beautiful, beautiful sight, the president and the first family, they have just gone forward with the annual tradition.

they lit the christmas tree there you see the president walking down. he is always excited, as is every president to do this. kate bolduan is watching with us as well t is a lovely, lovely scene, you got to admit, you drive by the white house, the ellipse, the national mall, it is a wonderful sight. >> you live in washington, d.c. it signifies the holiday season is here, the beaut beautiful tv in front of the white house, the pictures that we are showing you it is an annual tradition, regardless of your political leanings or religious leanings it indicates that the holiday season is here. i think we even heard the president wish everyone happy holidays. >> this is jackie evancha singing "o holy night." let's listen for a few moments. ♪

>> there it is. you can see the beauty here in washington right now, it is a festive season indeed. and it is one that if you come to washington with these coming

days, i represented it highly, drive by the national mall, check it out. let's get back to some news, top stories, kate is still here. what is going on, kate? >> let's get right to it wolf, stories we are watching now includes citigroup has announced that peter orszag is joining its global banking division as a vice chairman. you ler gish the former budget director was the youngest member of president obama's cabinet and played key role in helping the administration get economic stimulus bill and health care reform legislation passed. orszag left the white house in july. lakeland in politics, potential gop contender mike huckabee planting new roots in a state critical to the general election, think about it. the arkansas times is reporting that the former arkansas governor and 2008 presidential candidate is building a $2.2 million home on the florida panhandle. you knew that huckabee told cnn this week he is currently considering a second white house bid. i know everyone was very concerned about this, the lead singer of the rock band, the

doors, has just been posthumously pardoned nearly 40 years after being convicted of indecent exposure and open profanity during a miami concert. outgoing florida governor charlie crist proposed that the late jim morrison officially be let off and the state clemency board voted in favor of the request. morrison was appealing his conviction when he died in 1971. and for only the second time, an empty chair will be used to represent a nobel peace prize winner at tomorrow's honors ceremony. professor lieu show bow is serving a sentence for subverting power. the gesture is meant to show support for those in china struggling for human rights. noble committee is known to make some controversial picks. >> congratulations to the professor. >> 2009, who won, you know this. >> we are going to the commercial right now. he deserved it, right?

>> accident. >> that is what everybody thinks, some people not so much. >> if you are in china, not so much. students in britain are fighting mad now, now that the parliament voted to raise their tuition in a big, big way, just ahead. the political pearls of trying to cut spending. and why protesters say they are planning to disrupt the funeral of elizabeth edwards. hey... everyone's eating tacos outside bill's office. [ chuckles ] you think that is some information i would have liked to know? i like tacos. you invited eric? i thought eric gave you the creeps.

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you are in "the situation room." happening now, they are known as hacktivists, groups attacking credit card companies who have broken ties with the whistle blowing site, wikileak he is some their actions trigger a dangerous cyberwar? plus, the so-called bomb factory house burns. the federal judge clears the way to destroy the largest ever cache of homemade explosives. i'm wolf blitzer. you're "the situation room," lots of mayhem on the streets of london now over a parliament vote to raise the tuition cap by $10,000 a year. at one point, angry protesters even attacked car carrying prince charles and his wife, camilla. our senior international correspondent, dan rivers, is in london and has all the details. >> reporter: wolf, the police are slowly beginning to push the protesters out of recall payment

square after hours of angry and bitter protests which didn't stop this vote getting aproved in the houses of commons behind me. police trying to push them to the agreed route for this protest, down whitehall here. some of the more headline-grabbing incidents in all this are clearly when the car carrying prince charles and camilla was attacked as it went to a theater performance in central london. both of the royals escaped unharmed but a sign of just how ferocious some of these protests have got, some of the government buildings were attacked, including the treasury, windows broken in the treasury, none of this stopped the vote getting passed, narrowly by 21 votes. nevertheless this raising of the cap on tuition fees will now go

through. it will go through the house of lords and normal procedure to the absolute bitter acrimony and anger of the students who have been here all day. don't forget, this is just the first austerity measure to really bite here in britain. there will be many months and possibly years of this kind of angry protest coming as the cuts start to bite. wolf? >> dar rivers in london, we are watching that story with you. a top economic adviser to the president is being used of using scare tactics to try to get the tax cut deal with the republicans passed. is the threat of a second recession real or is it simply an exaggeration made up by larry summers? and it could be the vehicle that burns astronauts back to the moon -- at least brings them back to the moon. >> if the shuttle was the limo of spacecraft, orion is the smart car, designed to be much smaller, cheaper, safer than shuttle and to go a heck of a lot farther.

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but i knew that i was going to need a day job. we actually have a lot of scientists that play music. the creativity, the innovation, there's definitely a tie there. one thing our scientists are working on is carbon capture and storage, which could prevent co2 from entering the atmosphere. we've just built a new plant to demonstrate how we can safely freeze out the co2 from natural gas. it looks like snow. it's one way that we're helping provide energy with fewer emissions.

it has been almost 40 years since u.s. naughts last set foot on the moon. nasa has to no plans to send crews become to the lunar surface but there is, yes, a space vehicle being developed right now that could make manned missions safer and more practical. here is cnn's john zarrella. >> reporter: this is the inside of the future, a mockup of the orion spacecraft. >> the head down there.

>> right. >> so you probably want to squat down a little bit. >> right. >> reporter: if the shuttle was the limo of spacecraft, then orion is, well, the smart car. designed to be much smaller, cheaper, safer than shuttle and to go a heck of a lot farther. >> by 2015 we hope to have humans on board and then after that it is just a question of where we want to go next, 'cause this is a multipurpose vehicle and it can go anywhere. >> reporter: since the end of the apollo moon missions no moons have are gone anywhere except circling earth tort space station. orion, apollo on steroids could go there too but its real reason for being is to eventually take astronauts to the moon, perhaps mars. its first deep space mission could be to an asteroid called 2008 ea 9. >> so in 2019, we could be spending two or yes ryan docked together with two crew members out on board out to do a space walk and scoop up some of that asteroid and bring it home. >> reporter: two astronauts

would be plenty comfortable inside the cylinder during the three-month trip and no problem at all for four astronauts going to the moon. >> i assure you in zero gravity, when you can float this is lots of room for four people. >> really? >> oh, yeah. >> reporter: easy for her to say. orion is supposed to be ten times safer than shuttle, one reason a powerful launch orabort system energy its first real test, three rocket motors produced half a million pounds of thrust, pulling the crew model away from the pad in a matter of seconds. >> from 0 to 600 miles an hour in three seconds. >> reporter: at the kennedy space center, nasa and lockheed martin showed a mockup of the escape system and crew mold. young patrick gal low has no problem with the notion of an orion ride to an asteroid. cramped in there i have been inside that thing. you are okay that? >> mm-hmm. >> you would go? >> yeah it would be fun to seeing? you have never been to before. >> reporter: now there is one big stumbling block to all this

talk about lying in the moon or an asteroid. orion can't propel itself out of the atmosphere, you need a powerful rocket and while it's coming that rocket doesn't yet exist. perhaps a case of the cart before the horse. john zarrella, cnn, at the kennedy space center in florida. there are new online attacks by supporters of wikileaks, major websites that you so many of us use every single day now at risk of being brought down by hear. what's going on? more potential diplomatic trouble by the state department over the conversion to airport security pat-downs, why one country is now calling them, and i'm quoting, humiliating.

very disappointed president obama now issuing statement, reacting to the decision by the

united states senate today to not repeal don't ask, don't tell, the policy that prevents gays from serving openly in the u.s. military. the president's statement, among other things, saying minority of senators were willing to block this important legislation, largely because they oppose the repeal of don't ask, don't tell, referring to the national defense authorization act. as commander in chief, i have pledged to repeal this discriminatory law, a step supported by the secretary of defense and the chairman of the joint chiefs of staff and informed by a comprehensive study that shows overwhelming majority of our armed forces are prepared to serve with americans who are openly gay or lesbian a great majority of the american people agree. this law weakens our national security, diminishing our military readiness and violates fundamental american principles of fairness, integrity and equality. the president very, very disappointed. let's talk about this and more in our strategy session. joining us now, democratic strategist donna brazile, cnn political contributor republican strategist, john fear rush the

president of quinn gillespie public relations firm here in washington. is it a public relations firm, a lobbying firm? >> both. >> consulting firm? all of the above. >> all of the above. >> let's talk about this you must be heartbroken, donna, see the president of the united states suffering setback after setback after setback. some of these setbacks coming from fellow democrats. >> well, wolf, i was heartbroken on november 2nd, but i'm in a mood to fight. i want to fight for middle class tax cuts and i think most democrats on capitol hill would like to see those tax cuts he can sended. they want to see unemployment benefits extended, but there are parts of this deal, as you know, that makes some democrats a little bit queasy and i'm in that category. eat state taxes, for example, that's not a good use of our federal resources at a time we are trying to save money. i think the president will go up to capitol hill, should go up to capitol hill, speak with the house democratic caucus, thank those members for taking tough

votes this past session and perhaps you will get a compromise. >> you know, the president says he hopes the senate will reconsider and still vote repeal don't ask, don't tell during this current lame duck session. is that possible, you think? >> i don't think so lame duck, lame duck in particular is very lame, you know, very hard to push things through the system. i think that's the problem be with this deal, the president didn't give the democrats enough time to digest it, didn't have the process broke down and you have really an open rebellion, kind of reminds me what happened in 1990 with the bush budget deal, republicans scurried away from president bush, killed him in the re-election bill. >> read my lips no new taxes? >> exactly right. you have this kind of open rebellion with the president this late in the session is are really not good news for his re-election bid. >> larry summer, who is the outgoing head of the economic team at the white house a man you probably know quite well, spoke to our suzanne malveaux today. he said you don't pass this

deal, as is we are look ac at double-dip recession, another recession, serious recession for the american people. listen to this exchange we had with suzanne. >> in layman's terms house, do you hit back at the democrats, the critics who say this warning about a double-dip recession is an exaggeration, an overstatement, that this is a political move? it is not a political move it san economic analysis, an economic analysis that tracks the judgment of many other many our economists. >> what he is suggesting, the whole package, think to have as an economic stimulus package designed to create jobs. even though not paid for, as they say. what is wrong with that analysis? >> what is wrong is the world view, that the democrats and as well as republicans must now accept, which is we can spend money when it is for the wealthiest americans but when it

for the poorest and those hit by the recession, the middle class, we have to pay for it. >> tax benefits for the middle class in this deal. >> wolf this is a $900 billion. >> the money should go to those who need it most, not those who will invest it elsewhere. look, wolf -- >> you say the president flat-out wrong in signing onto this agreement? >> i think framework has a lot in it, that democrats should -- and republicans should support but at the end of the day, we need to look at these other items and say, okay, can we make more changes? >> is this a take it or leave it or are they ready to start renegotiating the whole deal? >> the republicans are in the catbird seat three, weeks, they are going to take over the house, they can negotiate a much tougher deal they standing put f they want to get in on the deal, the democrats have to try to find five republicans to vote in the senate, which they are not

going to get. this keel is as good as the democrats are going to get and get a lot worse for them in january. i would say about larry summers, he is no politician. he is an economist. i think he is right. i wouldn't want to be the democrats now, vote down this bill and have a double-dip recession. >> if they don't pass this you know, donna, millions and millions of middle class families their taxes are going to go way up, $4, $5,000 a year be starting january 1st this deal isn't accepted. >> why the president said it rightly this is like hostage taking. the democrats spent the last two years, republicans focusing on re-election, the democrats have been trying to help middle class, the poor through this recession. i don't think anyone should blame the democrats. >> donna. >> not going to bat for the middle class. >> donna. donna. >> the democrats have done nothing on tax -- nothing on tax policy. this is overdue homework. overdue homework they didn't do -- >> small business. absolutely right on one point.

>> overdue homework w done this before the election. >> i agree with you on this point. ment deserve an upgrade. >> malfeasance. the republicans long since failed they can weentd 'bama to fail. wolf, we have to continue this conversation. the bottom line -- >> we will continue during the commercial break. >> i got to tell you this. president obama should use an executive order and make sure we no longer allow people openingly gay and lesbian in the military to leave service because of sexual orientation. >> guys, thank you very much. jack cafferty is asking what do you suppose new york mayor michael bloomberg is up to now? and an ambassador from india says the pat-down she got at a u.s. airport was unacceptable securitisome that what it was? stand by. bolt by bolt, car by car, out of the very best america had to offer. ingenuity. integrity. optimism. and a belief that the finest things are the most thoughtfully made -- not the most expensive.

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jack is joining was the cafferty file. jack? >> the question this hour is what do you suppose new york city mayor michael bloomberg is up to? david from las vegas says that america needs a strong independent party and bloomberg is the right guy at the right time. president obama disappointed the democrats, independents and crossover republicans that elected him. that ship has sailed now and the country needs to look for a leader who can stop the downward spiral of the world's only super power. tricia writes he is going to run and he realizes that the top two

party candidates are disasters in the making and the country cannot stand for another six years of the way things are going now, and how unique to have a grown up in the white house for a change. and carol says that his gras i have -- gravitas gives him the right to run, and if he wins who knows what scary creature will slip up? and scott writes that he is up to his eyeballs in prepositioning. he is a billionaire and learned the fine art of political maneuvering in the new york city political arena or should i say zoo? a republican when first elect and good memories of giuliani required a republican to follow him and then became a independent, because by then a independent could not get re-elected in new york city and then he needed a third term to

get elected. he is looking for next office to buy. i think that his time has come. and mark says that bloomberg is one of the richest men in the world, so i would imagine that most of the faithful viewers don't give a damn what he is up to. we are trying to keep our jobs and pay the bills and we don't spend a lot of time sitting around the dinner tables asking each other, oh, by the way, honey, did you wonder what bloomberg is up to? this question must have come from wolf. if you want to read more go to cnn.com/caffertyfile. >> oh, tell them the truth, jack. you come up with your own questions. >> i thought it was funny. >> all right. thank you very much. house democrats are outraged in making a deal with the republicans. i will ask one outspoken congressman new york's anthony weiner to tell us about the anger, anger that exploded

behind closed doors today. >> and the white house tapes that helped to bring down the nixon presidency and now hundreds of hours of secret recordings are being released. and by the way, this is b.b. king performing over at the white house christmas tree lighting ceremony and we will go to commercial listening to b.b. king.

>> man: diving to 4,000 meters. >> boy: go down, down, down. down. straight. go straight. no, to the right. to the right. >> go to the right, go to the right. >> whoa! >> whoa! >> what is that? >> man: well, that's a, uh... i don't know. >> whoa. >> can we call him blinky? >> woman: expert teaching. deeper learning. together, we are the human network. cisco.

now a very different kind of protest threatening to disrupt the funeral of elizabeth edwards the estranged wife of the former presidential candidate john edwards is due to be buried in north carolina on saturday. a radical group known for protesting military funerals is promising to show up. let's bring in the pentagon correspondent barbara starr? >> well, wolf, this group has caused years of anguish for military families of the fallen and the wounded, and now the edwards' family. >> reporter: retired sergeant ryan newell walked out of the kansas jail on two proth l-- prs lettic legs. newell had struggled after the war, and he received a new home

his community built for him and his family. >> actually, he has brought a lot of comfort to us, and a lot of joy to us. it has helped with the recovery. >> reporter: newell is one example of growing veterans anger at the kansas-based westborough baptist church led by fred phelps and his family. they have been preaching hate-filled anti-homosexual messages claiming that troops deaths are caused by god. newell was arrested with weapons in his car near a meeting of the westborough members. paul reichoff heads the veterans of afghanistan, and he says that veterans are angry of the protests. >> they are angry and disgusted by it. >> reporter: he says that they have one motive in trying to protest at elizabeth edwards'

funeral. >> they are looking for attention, and they know that the media will be there and they can get more attention for their radical agenda, and i hope this does not detract from honoring this courageous woman. >> reporter: right now, the westborough church is under the supreme court, because private ryan newell is out of jail at the moment, but local law enforcement will be there in north carolina if they do show up at elizabeth edwards' funeral. >> and kate, what have you got about the home burning that was a bomb factory? >> well, there is a home that contains the largest ever cache of explosives. they say that the home was too dangerous for the bomb squad to

enter, and the resident of the home being held on $5 million bail is asked to delay the burning so that the lawyer could retrieve evidence. in nixon presidential library is opening to the public a trove of new records including more than 250 hours of white house tape. the library which is part of the national archives will open more than 4,000 pages of presidential records which include tapes on vietnam, and the prisoners of war and the infamous watergate scandal. and wesley snipes is incarcerated. he reported to a pennsylvania prison to begin a three-year prison for failing to file tax returns. an attorney for snipes says that he is appealing the misdemeanor conviction, and snipes is uneasy about losing his freedom, but praying for a miracle. thank you, kate, for that. you are in "the situation

room." happening now, house democrats defy president obama saying they won't consider the tax cut compromise he hammered out with republicans unless there are major changes. the latest in the stinging setbacks for the president. also, online activists on the attack right now against those they perceive as enemies. they are targeting major companies and some fear that this could be the beginning of an all-out cyber war. and a new twist on the controversial airport security pat-downs. they are now impacting u.s. diplomacy after a top dignitary was subjected to one. we want to welcome people in the united states and around the world, and headlines and breaking news and jeanne moos is straight ahead. i'm wolf blitzer, and you are in i'm wolf blitzer, and you are in "the situation room." -- captions by vitac -- www.vitac.com a while ago we saw president obama help light the national christmas tree here in washington, but tonight, there are no political presents for

him, but only lumps of coal. two of the key issues have gone down in defeat in the last 24 hour, including the dream act and repealing the don't a"don't don't tell", and now the house democrats are in open revolt against the president about the tax plan he brokered with the republicans saying it is unacceptable. in a surprise move they app proved a resolution rejecting the plan as written, and they say they won't vote on it, unless significant changes are made. let's go to the white house, and the senior correspondent ed henry is standing by. ed, first on the disappointment that the president must feel over the senate's decision to not even go forward on a vote for "don't ask, don't tell" to repeal it so that gays and lesbians can serve openly in the united states military. >> you are right, wolf, a huge blow for the president. robert gibbs said they were very, very close to getting the super majority of the 60 votes they needed to move forward on it and repeal "don't ask, don't

tell." they got 57 votes and very close obviously, but not enough. the president has just put out a statement in the last couple of moments, and he is expressing deep disappointment, but vowing to move on. he said while the vote was disappointing, it must not be the end of the efforts, and i urge the senate to revisit these important issues during the lame duck session, and they are running out of time though. and one of the issues is that they are asking the house to take up the issue once again, and they passed it long ago repealing "don't ask, don't tell," and if they take it up, there may be a speedy way to get it back to the floor. in the administration, they are looking to see if the president can use executive order to overturn it, and that is tricky, because some say that is not the full correct course of the law, and there is divided legal opinion, but they are scrambling to figure tot n yuure out the n

wolf. >> let's dig deeper with congressman anthony weiner of new york joining us along with senior political analyst gloria borger and chief political correspondent candy crowley who is host of "state of the union" which airs sunday mornings. congressman, i know you are bitterly disappointed with the senate's refusal to take up this deal that was brokered. but what about this caucus voting to not even take up this measure on the floor in the lame duck session? >> well, to a person in the cauc caucus, you have a person who very much want the president to be successful and move forward, but who believe that the deal was struck that was not very good. it didn't reflect the best we could get, and it does not reflect democratic values and frankly, does not reflect where the american people are. so with all of the changes that we need to make, we have an obligation that we want him to be a successful president, of course, but we have obligations to the constituents and

districts and one by one people stood up on suggestions of how the package can be app provedve and now we will go to work to do that. >> and bill clinton used to say that you can't let the perfect be the enemy of good, and you to compromise. listen to what he said. i will play this clip. >> this is a big diverse country. not everybody agrees with us. i know that shock people. you know, the new york times editorial page does not permeate across all of america. neither does the "wall street journal" editorial page. most americans, they are just trying to figure out how to go about their lives and how can we make sure that our elected officials are looking out for us? that means because it is a big diverse country and people have complicated positions, it means that in order to get stuff done, with e we have to compromise. >> what is wrong with that

thinking, congressman? >> well, compromise is how governing is done, but two steps happen before the compromise. one is you forcefully state your position and secondly campaign hard to get it done and then often you have to compromise. but we missed steps one and two here, and that is the critique. also, because you strike a compromise does not mean it is a good one. it does not mean that you are immune to criticism if you do something that is not frankly in the best interest of the american people, and that is why you have a congress. we count as well, and that is why, when you see so many of the congress who have concerns about this, one of the things that the white house can do is to say, listen, these are people who want success also and smart people and maybe they can offer us something and we will try to improve on the deal. >> congressman, it is candy crowley. way tonlt re i want to read something that one of your colleagues had to say from oklahoma. we are allowing the liberal wing of the democratic caucus to hold these critically needed tax cuts

hostage. are you prepared in fact to leave congress without any kind of tax cut if it means that you would have to, tax cut extension if it means that you would have to accept extensions for everyone? >> compromise means that you have the give things but i also believe that we have benefit and the president has the benefit that the things he wants to do are very popular. tax cuts for the middle-class and unemployment insurance and the like and those are the popular things, and things that are added on are not popular. >> but congressman, the question is, will you leave, you and your fellow democrats leave for christmas break until the next session of congress without extending those tax cuts if you have to in order to get those tax cut extensions accept them for everyone, and walk away from it? >> no, we are committed to getting the tax cuts for the struggling middle-class and those who are struggling to make

it. we are committed to doing that in the next two weeks. >> so, this is gloria borger, congressman, joining in the questioning. do you believe that president obama sold you out? >> i don't think he sold us out, but he didn't make a good deal. >> and so, if it comes back to the table where the republicans say to follow up on candy,p republicans say that we are not going to vote for anything that doesn't also include these tax cuts for the wealthy, which by the way are $95 billion of this whole cut package, you will walk away from it? >> well, it is $95 billion not including the estate tax -- >> well, okay, so -- >> well, let me answer the question. it is funny how everything is couched in, well, the republicans won't go along, dot, dot, dot. and there are other people and we control the house and the senate and the presidency right now. >> well, shg, they will when t come back. >> well, we control the house and the senate and the presidency and we should drive a

forceful bargain to rally the american people the our side, but the intention is to change this package but to get tax cuts for the middle-class and unemployment insurance extended and to get it done for the next two weeks. >> i don't know if you saw the analysis in the "washington post" by ezra kline who pointed out that of the $800 or $900 billion that this deal will cost in terms of the lower revenue for the treasury, most of it goes to the middle-class. i mean the republicans they did get $95 billion for the tax cuts for those making more than $250,000 a year and $30 billion for the estate tax cuts and that is $125 billion, but look at what the democrats got. they got $120 billion in payroll tax cuts, and $40 billion in refundable tax credits and $56 billion in unemployment insurance, and $30 billion to $180 billion in business tax incentives which is a total of $246 to $3969 billion and

another $300 billion for something that everyone agrees is continuing the tax break for the middle-class. it looks like the democrats got a better deal? >> well, it is not about democrats or republicans, but 97% of the american people are on the side of what we are advocating. >> well, you have the make a deal sometimes. >> well, hold on. now, remember, that you have 97% of the american people on one side of the ledger and 3% on the other side. the president, the congress representing the 97%, and you are saying, yes, the 3%, but i am saying that the 3% got too much. >> what happened on november 2nd in the elections, the american people repudiated the democrats especially in the house big time. >> i want to tell you something, it was not over this issue, and we should have engaged this issue and some place i agree with the critics of congress, we should have engaged this issue, but so should the president -- >> and why didn't you? >> -- hold on, one thought at a time. we want to get this done at the time we should have been pushing

to get it done. you remember when president rigan took on tip o'neill with the majority of the seats that he wanted because he made a campaign out of it and made it clear to the american people what he fought for and that is what we should have had. >> are you saying that it is -- >> well, i am saying what i am saying. and i don't know why you keep saying what i am saying. >> well, he blinked and he could not negotiate a good deal? >> no, i'm saying that he did it and he can still and should, and i'm not saying he is incompetent and he can be a success and he k but the critique i do make is that i don't believe that the president realizes the power he possesses to move the meter on the votes that we have. we don't have votes that are static things and not a number of votes that stay still. if the president of the united states truly tries to do something, he can do it. i will give you a case in point, right now, the approval for this deal is creeping up and up, and why? because he is selling it, as bad as it is, he is going out to

sell it. what i am saying is he should take that same force and say, we made some mistakes here and i will accept what the house of representatives is proposing and fight for that and make it happen. >> congressman, i am assuming that a lot of what you want, and a lot of the things that wolf read to you are in this package. tell me what would make it palpable to you, this package? what do you want out of it to make your yes vote? >> well, i won't negotiate now, because a lot of the members of the caucus will bring forward other ideas and the estate tax is odious, and more generous than the republicans were proposing. i think that it affects literally 32,000 families in the country and costs an enormous amount of money and it is odious. >> what does this tell you about president obama if anything, congressman, about how he is going to behave in the next two years as he deals with the republican house and strengthened republican caucus in the senate?

>> well, that is a great question. one of the great concerns as a caucus is that this is a harbinger that we need to make sure that we as democrats fight hard for the american people, for the middle-class and those struggling to make it. we have to even, and we know that we might lose some fights, but we have to make them. i think that one of the things that i heard on the democratic caucus over the last couple of days is that we need to do a better job at doing that. so i hope that what it tells us is that the president is going to learn is that we, his allies, are prepared to fight along his side if he gives us the chance to do that. >> on the notion of it takes two to tango and not only the house of representatives, but the u.s. senate. look at what is going on in the senate, congressman. they could not bring up this vote to repeal "don't ask, don't tell" and they could not bring up the vote to pass, what you passed in the house of representatives the dream act to allow thousands and thousands of young kids who were brought here illegally to get citizenship by

going to college or by serving in the united states military and a subject so close to your heart, compensation for 9/11 first responders and you have been working so hard on this in the house of representatives, and they couldn't even bring it up in the senate today. it must be so frustrating to you to see what is going on, and i got to tell you, it is only going to get worse when the new congress convenes in january? >> well, thanks for cheering me up, wolf. well, look, when people say, oh, congressman, how come you didn't bring up this vote on the tax rate back in august or september, well, you know, ben franklin said that the senate was the cooling sauce of democracy, but it is like a meat locker over there, and everything is going to die. it is a problem. the senate is a minority rule body and it is troubling. i hope on the one issue, on the 9/11 first responders that some partisanship can be set aside for a moment to let this get done, but why should we think it

is different in the future if all it takes is a bunch of senators saying, i won't do anywork until you do a-b-c, and if the president acquiesced to that without a fight, it is going to encourage that behavior late ore in. >>ly tell you, congressman, and you know this as well as i do or anybody else knows this, if the republicans do well in the next time around and become the ma jor ati in the united states senate which is possible, that filibuster rule, you will be happy to have it, because was you will be using it as the republicans are using it right now, and it has been going back a long time and something that the senate and the country is going to have to live with? >> perhaps. i hope you don't accuse me of being inconsistent when i support nit that ca-- support i that case. but in any case, this is not about rules in the house or the senate, but focus on what is best for the american people. i fundamentally believe that adding $50 billion or $60 billion to adding exemptions to

the super rich is not making a lot of sense. to try to make sure that the middle-class and those struggling are trying to make it is what the president campaigned on and trying to do. and the folks at the whits mouse a are saying -- white house saying, why are they being so harsh on us, and people like mitch mcconnell, so eager to critique us, we are eager to fight alongside him, because he will be a two-term president when he get it right with our help. >> what the republicans got out of the $900 billion deal, is tax cuts for the wealthy and the estate tax, and the democrats got $750 billion of what they wanted, so it is obviously -- >> well, you are making one math mistake. what we want impacts 97% of the people. and it should be 97% of the deal. >> well, sometimes you to accept something that you don't like in order to make a deal, and that is the nature of compromise and

any -- nature of the negotiations. >> all right. well, tell the 97% of the american people that it affects. >> okay. i am trying to give all of the views. >> thank you, wolf. and jack cafferty is here with the cafferty file. jack? >> looks like knot morgie nothi a dream. the senate didn't have a dream today when they didn't vote on the dream act. it is the education for illegal alien immigration act. it would have offer ed help for those who were brought here illegally. the dream act would apply to illegal aliens who came here younger than 16 and lived in the u.s. for more than five years and received a high school kooc

diploma or g.e.d. and shown good moral character and they would have had to go to college or military for two years and pass criminal background checks. those who don't fulfill the requirements could lose their status and be deported. they say it provides legal standings for those who have come here and bettered themselves and serve our country, and others say it is nothing more than backdoor amnesty, and it also allows them to get free public education at our universities and a manage net for fraud. and here is the question, should the illegal aliens who came here as children be given a path for citizenship? go to cnn.com cafferty file, and post a comment on my blog. >> thank you, jack. pat-down diplomacy, and those controversial security checks are causing headaches after one top diplomat says she was humiliated publicly. also, they are called

hacktivists and they are trying to launch a cyber war. and michael bloomberg and a possible, possible presidential run. [scraping] [piano keys banging] [scraping] [horns honking] with deposits in your engine,

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you can save up to half off that sale when you name your own price on priceline. but this one's a deal...trust me. it's only pretending to be a deal. here, bid $79. got it. wow! you win this time good twin! there's no disguising the real deal. certainly looked and sounded like a campaign speech, but the speaker says he is not a candidate at all. we are talking about the independent new york city mayor michael bloomberg and we go to new york. mary snow has the details. what is going on with michael bloomberg? >> well, the new york mayor says he is not running for president, period. but if he is trying to dampen rumors he is not doing well in a speech he gave yesterday giving aim at both political parties.

>> reporter: a man who has the world buzzing is michael bloomberg and a potential run for president. >> number one, i am not running for president. i could not be clearer about that. >> reporter: but a speech wednesday on how washington is failing on the economy and creating jobs didn't do much to dampen the speculation about 2012. >> both parties follow the mood of the moment instead of leading from the front. they incite anger instead of addressing it for their own partisan interests. they tell the world about every real or imagined problem in america and not what is right in america, and especially in these tough times. we need the leaders to inspire the whole country and not criticize half of it. >> reporter: headlines that followed raised the possibility that this is the opening salvo for a presidential campaign. and ralph nader wrote 21 reasons why bloomberg can win. but bloomberg insisted that a presidential run is not in cards and ditto for howard wilson, now

a deputy mayor of new york who was a top adviser for hillary clinton's campaign. if he is not running for president as he insists he is not, what is the role he is shaping for himself? >> well, he wants to be a voice for moderation, for centrism, and a voice for many americans who are independent who are not necessarily partisan republicans or democrats who believe that washington needs to come together to get things done in the middle. >> reporter: this is not the first time there is speculation of bloomberg eyeing the white house. it came up in 2008 and went nowhere. contributor john avalon who worked for senator giuliani did not see him running. >> i take him at his word. there is a bigger story and bloomberg is a hook for the story. >> reporter: that story has to do with the independent movement. >> recognizing that the independent candidates are increasingly elected to governors and senators and

mayors in the country is what is a larger dynamic that he is a symbol of. >> reporter: and one thing that the speech did was to gain bloomberg attention. the speech is keeping him in the spotlight and the speech is one of many he is planning and this sunday, he is planning to be on "meet the press." >> and he has billions of dollars out there, if he wants to run. there is one opinion that if he runs he could take votes away from president obama and if sarah palin runs, there would be a three-way split, and nobody would get the electoral votes that you would get to be president of the united states, and what happens then is the house of representatives and in the new house, the republicans have a new majority, so under that scenario, sarah palin could be elected president of the united states. one scenario that a lot of people are thinking of the bloomberg decides to run. mary, thanks very much. can smoking just one

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>> let's check in with kate bolduan who is monitoring the other top stories in "the situation room" right now, and what is going on, kate? >> well, a source close to the former alaskan governor sarah palin says she will travel to haiti this weekend with franklin graham and his charity samaritans first. they will visit a cholera clinic on the first stop. and haiti is grappling with an epidemic that is killing thousands of people since september. and new report shows that smoking can cause serious illness or death, and the new surgeon general's report on smoking says that there is no

risk-free exposure to tobacco. and adding that today's tobacco makes cigarettes more addictive and dangerous. and wealthy families and groups are pledging to give away a majority of their fortune to charity. the giving pledge was founded by william buffett and microsoft founder bill gates and his wife melinda, and joined by many others. >> and still, plenty of money leftover. >> thank you, wolf. >> thank you, kate. and they call them hacktivists. a trillion eventually his taxes will double just to pay the interest. i'm hugh jidette and i say let's keep borrowing and stick our kids with the tab.

>> a major setback for president obama today. a bill ending the ban on gays and lesbians serving openly in the united states military failed to pass a procedural vote in the senate. with the republicans taking control of the house the repeal of the "don't ask, don't tell," one of the president's campaign promises appears dead for the foreseeable future. our senior congressional correspondent dana bash is working the story on capitol hill. there is a lot of concern right now among all of those at the pentagon and elsewhere who wanted to see the senate take action. >> yes, and this is really three votes shy of the 60 needed to start debate, and that is what

we are talking about here. it was a really big blow to supporters of the repeal, because they were feeling like there was a momentum and more republicans coming out to say they agree that the policy should be repealed and in fact, negotiations with one republican senator in particular, susan collins appeared to be going well, and that is why she came out after the vote to say that she was upset that senator reid took this ill-fated vote. >> i am extremely upset that the senate majority leader walked away from the negotiations in which we were engaged and which were going well. the majority leader decided to prematurely hold the closure vote that he knew would not succeed. i just don't understand that decision. >> now, the reason why senator collins and other particularly democratic supporters of the repeal are so frustrated is

because they believe that there are 60 senators who now support repealing this. but the problem is that some of the republicans didn't want to take this vote right now, that they believed that dealing with tax cuts is more pressing for the country, and that that needed to be done first. and now the question is, why did reid do it? he said he didn't believe that the republicans in general mean it when they have the will and the faith to do this even afterwards. nevertheless, wolf, there is a lot of pressure on senator reid. i am hearing from the gay rights activists that they feel betrayed by him for taking this vote now, and in fact, in the ill-fated vote senator lieberman got approval from harry reid they would take up later on in the lame duck sometime, a stand alone measure to repeal the "don't ask, don't tell" bill. that is something that i am told now that may start in the house and end in the senate, but i have to tell you that despite this promise and the fact that people are saying they are not giving up, there is a jam-packed

schedule before the senate between now and the christmas holidays. you have tax cuts and the s.t.a.r.t. treaty and other things and lots of questions of whether the senators will stick around here into christmas and new year's if that is what it takes to do this. >> good question. all right. thank you, dana. let's dig deeper with our national correspondent jessica yellin, and john king who is host of "john king usa" coming up at the top of the hour, and what is going on here? >> well, i can tell you that there is a lot of pressure from the advocacy groups and if the president does not get this through congress -- >> what through congress? >> a repeal of the "don't ask, don't tell" through congress, then the white house is under extreme pressure to have the president act alone. they don't believe they have legal authority to through executive order overturn "don't ask, don't tell" -- >> because it is the law of the

land. >> right. and some believe that the president can use temporarily means to lift "don't ask, don't tell" or halt it and it is up for legal debate of whether he can or cannot, and there is a lot of controversy. >> john, when 42 republican senators sign a letter saying we are not dealing with anything until the tax cut issue is resolved, one of them, susan collins bolted, but the others stayed united and what made them think that they could break a filibuster? >> well, i don't want to be flip, but he went through a campaign where he was asked to man-up, and there is a little testosterone challenge in washington. and the democrats are a majority and they say, we will set the agenda for the final few week, and senator lieberman who is a independent, and senator collins says to give us more time, and senator reid would say they gave them enough time, and so they say they were at the finish line, but some of it about the specific issues and some of it is about who is in charge and

the democratic resentment of the losses. >> and lisa murkowski, and scott brown, the republican senator from massachusetts want to repeal it, but they said to harry reid, wait, and give us time so we can do it, the tax cuts first and then we will come through. >> and the republicans were caught in a box, because they have committed to their own leader, tax cuts first and how the fund the government first and then other things, and then senator reid is thinking, if i give it another day, they will ask for another day, and if i give them two days, they will ask for another day, and if i ask for christmas, they won't get anything done. the lack of trust in this town is debilitatindebilitating. >> and the president of the united states gets slapped today by the house democrats. i don't remember a time -- i assumed that would not happen, but it says a lot when they meet in caucus and say that the president may have worked on this deal with the republican leadership, but we hate it, and we won't vote on it. >> well, it is reminiscent as

gloria borger pointed out nafta when the president went up against his own party, and there are some who believe in the broader part that the president gains a little bit in taking up on his own party, and i hate the phrase, but man-up, and help him. it is clearly not a fight that the president wanted or to relish, and the president is not happy to have this fight. >> do you think they are revolting against the president so publicly? >> well, it is surprising, because the disdain of the president and his team is remarkable. they are not friendly. and just think for perspective, again, something we forget in the town that it was not that long ago january 2009 that the democrats came into power and they were having huge majorities in the house and the senate and the presidency. the house is in full newtmutinyd

the senate keeps putting up proposals for lame duck, and the republicans say, we don't have to say much, but let it play out. >> you have more at the top of the hour on "john king usa," and jessica, thank you to you, as well. attacks by wikileaks have damaged or shut down the web sites of several large companies. is this the start of an all-out cyber war? on a recently aired episode of a reality show, sarah palin is seen shooting a caribou, and now the critics are taking direct aim. jeanne moos has a most unusual look. y country ♪ ♪ 'tis of thee ♪ sweet land ♪ of liberty ♪ of thee i sing [ laughs ] ♪ oh, land ♪ where my fathers died ♪ land of the pilgrims' pride ♪ from every mountainside ♪ let freedom ring ♪

cyber attacks by supporters of wikileaks against perceived enemies have shut down the web sites of several major companies, but there is growing concern that the skirmishes may be the beginning of a broader cyber war. cnn's brian todd is investigating. brian? >> wolf, all sorts of concerns right now about whether this kind of attack could escalate and take down some major companies, well, we have come to a place called northrup grumman which is on the firing line to do a lot to protect its clients. >> reporter: they have a buzzword name, and hacktivists, launching cyber attacks on many companies. they have a scary sounding weapon. >> they have a tool called the low orbit canon. >> reporter: that is software that allowing people online to

bombard a website at once. so far the attacks have slowed down or temporarily shutdown the web sites of visa, mastercard and paypal and companies who have refused to do business with wikileaks. is it just a cyber protest or could they seriously wound their targets? >> it doesn't seem like mastercard is going if go out of business or paypal is going to go out of business because of this, but i think that, it tells us that it is kind of a new game in town. i mean, that this kind of capabilities to disrupt commerce do exist, and it doesn't take much. >> reporter: scientific american magazine editor says that an all-out cyber war could wreak far more havoc using more destructive tools like viruses and worms and virus software to infiltrate networks and wipe out data, and hackers say they have had that capability for years. brian hash is a prosecutor of

cyber attacks. >> they can break into that company and do whatever they want. >> reporter: experts say that most american companies have protected themselves with layered protection. this is a facility called the triad, a research facility at northrup grumman where they test out all sorts of machines to protect itself and clients from the cyber attacks. the northrup grumman has to protect not only northrup grumman computers, but some governmental agencies and private sector. we got access with robert gr grammer what is northrup grumman doing to protect itself from the serious attacks that could take a company down? >> well, we do several things. we have extensive training for the employees and things that guard the network like firewalls

and intrusion systems, and other systems that guard the network from the inside-out, to protect information from being leaked out of the corporation appropriately. >> reporter: he says that most major corporations have sophisticated mechanisms to combat against cyber attack, but nobody is fail-safe, and if something happens to bring down a company if temporarily, it could cause enough of a disruption to cost them a lot of money. wolf? >> brian todd, thank you very much. india's government is furious about the way that one of the top diplomats was treated by u.s. security screeners at an american airport. we will tell you what happened. stick around, you are in "the situation room." what are you looking at? logistics. ben? the ups guy? no, you see ben, i see logistics. logistics? think--ben is new markets. ben is global access-- china and beyond. ben is a smarter supply chain. ben is higher margins. happier customers... everybody wins. logistics. exactly.

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so they can focus on building amazing bikes. with xerox, you're ready for real business. it seems that no one is exempt from the controversial airport security pat-downs including top diplomats from around the world which is causing headaches for the state department. our foreign correspondent jill dougherty is here to tell us what is going on. what is going on, jill? >> well, humiliating and high-handed is what some indians are calling it. u.s. officials say it was handled by the book. >> last week at the jackson,

mississippi, airport, meera shankar traveling with a dell fwags was about to board a plane going from washington, d.c. and she was about to go through a thorough pat-down visible to other ambassadors. she was wearing a traditional indian dress, and, thetsa calle bulky. >> it is what everyone wears. >> let me be frank, this is unacceptable to india. we are going to take it up. with the government of the united states. >> reporter: homeland security chief janet napolitano defends the pat-down. >> it is a pat-down that follows our procedures, and i think it was appropriate under the circumstances. >> reporter: with a diplomatic storm brewing, hillary clinton say she's is concerned. >> certainly, we le be lo-- we

be looking ento it, and responding not only to the indian foreign minister, but reviewing the policies. >> reporter: and they say there has to be a better way. >> this the ambassador to the united states of america and certainly at some point common sense should prevail. >> reporter: and now homeland security says if a diplomat is traveling within the united states, they can work with them if that diplomat notifies the department in advance. the secretary napolitano is indicating that was not done in the case, and regardless, wolf, of the procedures, this is a diplomatic headache for secretary clinton. >> just what she does not need right now. thank you very much for that, jill. should illegal immigrants who came here as children be given pathway for citizenship? jack cafferty is next with the e-mail. and sarah palin drawing fire for hunting. cnn's jeanne moos is ready to take a most unusual look.

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back to jack with a "cafferty file." >> should illegal aliens who

came here as children be give an path to citizenship. shane writes -- reggie writes -- because the parents knew what they were doing is wrong and therefore, the whole family should be sent back. jane in california -- they're just like everyone else who has been raised here except their citizenship. ken in new jersey writes --

and hospitals, they get a free education at taxpayer expense and we're all supposed to welcome them with open arms because employers are too cheap to hire americans and rich people are too lazy to cut their own lawns. dee in ohio writes -- and mike says -- toupt read more on the subject,

go to my glog blog. >> thanks very much. check out this next story. i think wooul be interested. a new study shows occasional smoking, even second hand smoke, can cause eers illness or death. robert gibbs was asked today if president obama has imagined to kick his habit. >> it is not something he's proud of. he knows it's not good for him. he knows that it doesn't like it, doesn't like children to know about it, obviously, including his. i think he has worked extremely hard. i think he would tell you even when in the midst of a tax agreement and s.t.a.r.t. deal and all the other things that

accumulate, even where he once might have found comfort in that, he's pushed it away. >> the white house press secretary. jeanne moos coming up next. experience the exhilarating cadillac cts with a direct injection v6. it's the one gift you can open up all year long. see your cadillac dealer for this attractive offer. backed by the peace of mind that only comes from cadillac premium care maintenance. the season's best sales event. from cadillac. i'd get this tightness in my chest. so i went back to my doctor again. we chose symbicort to help control my asthma symptoms all day and night. [ man ] symbicort improves my lung function, starting within 15 minutes. symbicort will not replace a rescue inhaler for sudden symptoms. it is a combination of two medicines and should not be taken more often than prescribed. symbicort contains formoterol. medicines like formoterol

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hot shots. in london, police covered in paint over tuition hikes. in india, worships hold swords while escorting a holy book. in berlin, customers walk through a shopping mall decorated with christmas lights and in germany, a small dog wears a coat in the freshly fallen snow. hot shots. sarah palin under fire for her part in a made for tv caribou hunt. >> reporter: sarah palin may have shot this caribou dead, but the story still has legs when they show the viewer des cession warning, who knew that the

person who would be disturbed would be aaron sorkin. a couple of days after "sarah palin's alaska" aired, sorkin, e vis rated her on the "huffington post" saying, i don't watch snuff films, you make them. you enjoy kill iing animals. he called her phony pioneer girl and cruella. actually, palin prefers came camouflage. she missed five times. only because the scope was faulty. when they handed her another riffle -- >> good. >> there you go, baby. there you go. >> reporter: in his rant, sorkin called it the first moose ever murdered for political gain. hey, mr. sorkin, you keep

calling it a moose, but it was a caribou. the moose, right, is way bigger with way wider antlers. palin twittered a strike before the episode aired, saying unless you've never worn leather shoes, sat upon a leather catch or eaten a piece of meat, save your condemnation. >> sarah palin's an idiot. >> reporter: sorkin veered off into politics, what a uniter you'd be, bringing the right together with the far right. if that sounds familiar, west wing fans -- >> actually, what you've done in flaz is bring the right together with the far right. >> reporter: hunters tend to love sarah palin, but she did get some flak for her techniq s techniques. why can't she load her own gun. >> thank that mighty